Credit Card Payoff Calculator Malaysia 2026
See how long it takes to clear a credit card balance at a fixed monthly payment, how much interest it costs, and what paying only the minimum would cost instead.
Preview page. The rates are checked against official sources; the page is awaiting final review before it is published.
Result
This is an estimate for planning. Confirm the final figure with the bank, JPJ or LHDN before you commit.
How it's calculated
Each month the bank charges interest on the balance carried from the last statement, then your payment reduces it. As long as your payment is more than the interest, the balance falls a little faster every month.
new balance = balance + balance × yearly rate ÷ 12 − payment
The comparison line repeats the same steps with the minimum payment: 5% of the statement balance or the floor you enter, whichever is higher. Because the minimum shrinks as the balance shrinks, it clears the card very slowly.
Worked example (the default inputs). A balance of RM 5,000.00 at 18% a year attracts RM 75.00 of interest in the first month. Paying RM 300.00 every month clears it in 20 months, with RM 797.17 of interest and RM 5,797.17 paid in all.
Paying only the minimum starts at RM 253.75 and takes 69 months, almost six years, with RM 1,875.87 of interest. Paying RM 300.00 instead saves RM 1,078.69. At the 15% rate for a clean 12-month record, the same RM 300.00 clears the card in 19 months with RM 642.02 of interest.
The calculation assumes no new spending, no fees and no late payments. Any of those lengthens the time and raises the cost.
The rules banks must follow
Bank Negara Malaysia’s policy document on credit cards, reissued on 19 December 2025, sets the interest caps by tier, the 5% minimum repayment, the 20-day interest-free period, the late payment charge and the order in which payments are applied: your payment must settle the items carrying the highest rate first. It also limits who can hold cards. You need an income of at least RM 24,000 a year, and if you earn RM 36,000 a year or less you may hold cards from at most two issuers, with a limit of no more than twice your monthly income at each.
Why the minimum is a trap
The minimum payment is designed to keep the account current, not to clear it. In the early months most of a 5% payment goes to interest at 1.5% a month, so the balance falls by only about 3.5% a month. When the balance gets small, the floor takes over and the end comes faster, but by then years have passed. Setting a fixed payment, and treating it like a loan instalment, turns an open-ended debt into one with an end date.
FAQ
What is the credit card interest rate in Malaysia?
Bank Negara Malaysia caps it by payment record. Cardholders who pay at least the minimum on time for 12 consecutive months pay at most 15% a year, those who pay on time in 10 or 11 of 12 months at most 17%, and everyone else at most 18%. Cash advances are capped at 18% a year and have no interest-free period.
What is the minimum payment on a credit card?
At least 5% of the total amount outstanding, plus any instalment plan amounts due that month. Banks usually set a floor as well; Bank Negara Malaysia’s own illustration uses 5% or RM 50, whichever is higher. Paying only the minimum keeps the account in good standing but, as the comparison above shows, can take years and cost more in interest than the original purchase.
Is there an interest-free period?
Yes, for retail purchases when you have no balance carried forward from the previous statement: banks must give at least 20 calendar days from the statement date. Once you carry a balance, interest is charged on new purchases from the day they are posted until the balance is cleared. Paying the full statement balance every month is the only way to borrow on a card for free.
What does a late payment cost?
The late payment charge is the lower of 1% of the outstanding balance or RM 100, and any minimum charge the bank sets cannot exceed RM 10. Banks must allow at least four calendar days of grace after the due date. A late payment can also move you to a higher interest tier for the next 12 months.
How can I clear a large card balance faster?
Pay a fixed amount well above the minimum and stop using the card while you clear it. A balance transfer plan or a personal loan at a lower rate can cut the interest, as long as the fees are small and you do not run the card up again. If repayments have become unmanageable, AKPK, the credit counselling agency set up by Bank Negara Malaysia, offers free advice and debt management plans.